Peru: Law No. 31110 of the Agrarian Labor Regime and incentives for the agricultural and irrigation, agro-export and agro-industrial sector.

Law No. 31110 establishes the Agrarian Labor and Incentive Regime for the agrarian, irrigation, agro-export and agro-industrial sectors, in order to promote their development, improve competitiveness and guarantee labor rights recognized by the Constitution and international human rights treaties. The regulation applies to natural or legal persons that develop crops, breeding or agro-industrial activities that mainly use agricultural products, provided that they operate outside Metropolitan Lima and the Constitutional Province of Callao. It also includes small individual agricultural producers who are not part of associations and whose production does not exceed 5 hectares. Agro-industrial activities related to wheat, tobacco, oilseeds, oils and beer, as well as administrative and technical support personnel, are excluded from this regime. Regarding tax incentives, the law allows accelerated depreciation of 20% per year on investments in hydraulic and irrigation infrastructure, and establishes a 10% tax credit on reinvestment of up to 70% of net profits, after payment of income tax, during the period 2021-2030, provided that it is destined to technified irrigation systems.